Mohamed Al-Damaty, the Vice Chairperson and Managing Director of the Arab Food Industries Company (Domty), revealed that the expected sales volume for the current year is about EGP 4bn, pointing out that the company intends to pump investments estimated at EGP 150m during 2022.
He told Daily News Egypt that the company intends to pump investments from 50% of the company’s own resources and 50% from credit facilities acquired through banks, explaining that this is the usual policy of the company in pumping investments.
Al-Damaty added that the operating rate varies from product to product but ranges between 70-90%, pointing out that the company plans to add two bakery and dairy lines by the end of this year.
Furthermore, he pointed out that the improvement in the margin ratio witnessed during the last period came as a result of changing the selling policy.
He also pointed out that the company intends to retain profits or distribute a small part during the current year, while the company will distribute about 70% of its profits to shareholders during 2023, pointing out that a decision is still being taken regarding the matter.
Al-Damaty stressed that the company intends to expand exports during the coming period through the new company established with Dutch Friesland Campina — the fourth largest dairy company in the world.
Domty signed a partnership agreement with Friesland Campina in the first quarter (1Q) of last year to establish a new entity. This partnership is specialised in selling and exporting cheese to the African and Middle Eastern markets.
Domty will acquire 49% of the shares of the new entity that will be established in Egypt while Friesland Campina will acquire 51% of the shares.
The profits of Domty increased by 23.4% during 3Q of this year to reach EGP 51m compared to a net profit of EGP 41.3m in 2020.
The company’s sales also grew during that period to EGP 956m compared to the previous year’s EGP 724.1m.